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turborat
Junior Member
289 Posts |
 Posted - 09 September 2008 : 12:47:52
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It now looks like my wife & I will have to loose the house as well as going BR!!!
Quickly going over our position, my wife has recently had to give up work again due to ill health which leaves us depending on my income alone (£1650/mnth). My wages were used to cover household essential bills and debt payments (£1660/mnth!!)therefore leaving the wifes wages to pay for groceries, clothes, car, pet food, dentist etc.
Since our wedding in 2005 we have been struggling keeping spending within our means and are forever taking a loan to pay off credit-cards, o/drafts etc and also struggling with my wifes illness (not life threatening)causing her to not be able to hold down a full time job, but we have allways been able to cover payments although using all of my wages to do so.
We have a secured loan of around £23k and unsecured debts around £30k and are having to buy everyday things on another ever-increasing credit-card.
After getting great advice from this forum already on going BR we now find that we will have to have the house repossessed as even going BR we will still not be able to keep up mortgage, secured loan & bill payments and still be able to live on just my wages.
I am looking for advice on a sensible plan of action.
I have read that to start with we would have to miss 3 mortgage payments to start repossession procedings, saving this money to use for alternative accomadation (renting etc). Then after the second month move to the new accomadation.
Would I then be able to miss a couple of months on the unsecured debt to save for the BR fees? As we have had house repossessed would we be able to use the money from what we was paying on the mortgage & secured loan to cover these fees? What happens when the house gets repossessed? Do we just hand keys back & that is that?
We are so stressed & very confused at the moment and would really appreciate any advice or plan of action which could give us something to plan by.
Sorry for the essay but we really need advice as things need to start happening ASAP!!
Thanks in advance! |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 09 September 2008 : 13:27:33
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Hi there,
Well some people have found rented prior to BR then moved in. You can save for the BR fees and rental by not paying the secured and unsecured debts if you are going to leave the house.
Make sure that you write the mortgage and the secured loan on the SoA in both secured and unsecured and put in Possible shortfall.
You will be ok, i hope this has helped a bit.
Good luck
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my updated Needafriend's New Life- A Debt Free One! blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 09 September 2008 : 13:30:10
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Oh and try not to take anymore credit, stop using credit cards etc whilst getting this done and make sure that you take any monies out of you account prior to the hearing, to allow for living expenses and also the fees.
Then after the hearing call the Coop and open a cashminder account.
Try and get your hearing at the beg of the month or just after pay day so you have enough time to get the new account running to start to get your wages and bills paid from.
Some have opened there cashminder account prior but i did mine same day we went BR.
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my updated Needafriend's New Life- A Debt Free One! blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
Edited by - Needafriend on 09 September 2008 13:31:07 |
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pix1
Average Member
689 Posts |
Posted - 09 September 2008 : 13:39:11
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Hello, I can give you some useful advice based on first hand experience of exactly your situation.
My wife and I have both gone BR. In our case, on separate dates - me first and my wife a few months later. I advise you to go BR on the same date as this may be less confusing when your financial affairs are dealt with by the OR. If you are sure that Br is the right option then you do the following:
Completely stop ALL mortgage payments immediately. Why? Because, firstly, as you said, you will be able to use money saved from not making the mortgage payment pay the fees (currently £495 each) for your BR petitions, and, secondly, if you carry on paying the mortgage and go BR then the mortgage company may still be able to hold you liable for any shortfall that may accrue when your property is sold off. If there is plenty of equity in your property then this may not be such an issue, though.
It may be 6 months or more before you are forced to move out of your property, even a year. If you miss 3 months mortgage payments this would, typically, be the time that must elapse before the mortgage company begins repossession proceedings, however, it would be several months after that before they evict you. As to finding rented accommodation it is probable that you might have credit reference problems which might stop you from securing a tenancy through a rentals agency but it is likely that there would not be a problem getting a rental through a newspaper advertisement. Just that you should use the money you save not paying the mortgage to save a deposit on the future rental property.
Best of luck and don't worry. |
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turborat
Junior Member
289 Posts |
Posted - 09 September 2008 : 13:45:25
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Thanks Jo, great advice again.
So I now stop paying secured & unsecured debt, in 2 months move out & hand back keys, then declare BR once moved in?
Our issue at the moment is that if we don't use my card we cannot live day-to-day as all my wages are required for bills & to keep account from hitting o/draft limit. As soon as I stop using my card I will not be able to cover bills like tv, electricity, insurances etc and when I come to take my last wages payment the bank will take my wages to cover the excess spending so am really confused on what to do?
We will start to miss payments next month now as some have already come out and it takes a few days to cancel the direct debits. Will we be ok to use the card this month and then stop nect month once payments start to be missed but as I say this is our only money for food petrol etc??
Sorry for being a pain but want to get it all right in my head before "go for it"!!
Thanks |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 09 September 2008 : 13:47:27
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Thanks for that Pix1,
It is one of those questions that we all just cant seem to get our heads round.
We had equity and so stayed in our house, thats until the OR wants the equity or we cant afford the mortgage payments, which we will know when we come to the end of our agreement in May next year.
We included it on the SoA to be on the safe side. As we dont want to end up with anymore debt, now that we have started to get back on track. :-)
Good luck to all.
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my updated Needafriend's New Life- A Debt Free One! blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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turborat
Junior Member
289 Posts |
Posted - 09 September 2008 : 13:50:14
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| Also could we move into our caravan as accomadation as we may be able to get permanent residency on a local campsite as this will be cheaper than renting a property for now?? |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 09 September 2008 : 13:51:18
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Hi Turborat,
I cant see why not.
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my updated Needafriend's New Life- A Debt Free One! blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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turborat
Junior Member
289 Posts |
Posted - 09 September 2008 : 18:59:06
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Sorry if I am going round in circles but can somebody confirm if we should have the repossession first then once moved get the fees for BR?
If we have a repossession (by missing 3 months payments on secured loan & mortgage) then move out. Do we then halt unsecured payments to pay for BR fees?
If repossession goes through we we still be ok to claim BR as we will not have the secured outgoings anymore?
Shoud we just stop all debt payments alltogether and move out after 3 months and then immediatly declare BR?
Or should we declare BR now and go for repossession?
Again really sorry about all the questions but really need to be confident we are going to go the right route so all works out well in the end.
Thanks for all the advice so far, hopefully these questions will get the answers I feel I need to start planning the future!!! |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 09 September 2008 : 19:21:29
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All the things you have said you can do,
Its up to you which way is better as long as when you do go BR that you write the mortgage and the secured debts in both secured and unsecured so that they are captured.
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my updated Needafriend's New Life- A Debt Free One! blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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turborat
Junior Member
289 Posts |
Posted - 09 September 2008 : 19:39:52
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Needafiend you have definetly lived up to your username and helped me out with some great advice!
I think starting from beg of next month (as have already paid some secured & unsecured debt)we are going to stop secured & unsecured debt payments and after 2 month move into alternative accomadation which we can finance from not paying the secured debt and once moved declare BR (fees paid for by not paying unsecured debts) than hold our breath and hope all goes well!!
If this sounds dangerous or the wrong way to go about it please let me know otherwise we seem to have a kind of plan!!!
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harbourmaster
Junior Member
346 Posts |
Posted - 09 September 2008 : 19:58:20
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| How much is your caravan worth? Would the OR want that, or would it be different if you were to live in it? |
Edited by - harbourmaster on 09 September 2008 19:58:36 |
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turborat
Junior Member
289 Posts |
Posted - 09 September 2008 : 20:11:32
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| Caravan is worth around £1500 but we was thinking we would we be able to use the money saved for accomadation (secured debt) to put towards a bigger van to live in as ours is only very small? Would this be acceptable or do we have to rent bricks & mortar?? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 09 September 2008 : 21:46:53
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Hi there
thoughts for your strategy if Br is the right choice.
1. stop paying secured AND unsecured debts tomorrow.
2. Open a CO OP cashminder account tomorrow over the phone. As soon as you get the account ask your company to start paying your salary into this. Don't wast time get it done tomorrow!!!.
3. It will be 5 months at least before you have to leave the house
4. change your phone number and DON'T give it to creditors
5. Don't live in the Caravan - you both deserve more than that. it will also be harder to move back into a house and you then have storage problems.
6. There is no rush going Br but you need to get the basics sorted out first. Somewhere to live, bank, moving costs etc etc etc . Then you can save for court fees.
You will loose the caravan so I would recomend you control the situation prior to br and if you were to sell it this would help to overall costs such as court fees, rental deposit or even allow you to hire a professional to represent you and hold your hand through the process.
Most of all don't panic and don't rush.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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scared
Junior Member
United Kingdom
220 Posts |
Posted - 09 September 2008 : 22:12:37
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Hi Turborat -
My OH and I went BR in July. We have a mortgage and secured loan and want to hand back keys. If we had thought about things carefully, we would have first rented and then gone BR. Unfortunately, ours was a bit of a panic and a rush. I would definitely recommend going BR after you have rented a property, as it is difficult to find a decent house to rent with BR on your credit history. Letting agents look for two things - CCJs and bankruptcy.
Fortunately, we have found a decent place to rent from a landlord in the small ads who was sympathetic about our situation. We were just truthful about it and he doesn't even want a large deposit. We are due to move in on 1st October.
Most letting agents will let you rent. However, they will want three to six months deposit and/or a guarantor. This is a lot of money to find all at once.
Anyway, good luck with everything. You are not alone!!
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turborat
Junior Member
289 Posts |
Posted - 09 September 2008 : 23:23:59
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Wow, thank you both so much!!! That is exactly the advice we need at the moment.
We are going to stop payments, get some cash aside and move into rented accomadation within a couple of months. Sell the caravan then declare BR a month or 2 after that and hopefully can start dreaming about sleeping at night!!!
This website has been a godsend and is a very valuable source of information for anyone in our position.
Thanks again and more than likely I will have another question or 2 as things start to evolve!! |
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Now repossession & bankruptcy?!
